Shares of Viking Therapeutics surged by 28% on Thursday following the biotech company’s announcement that it will advance its experimental weight loss injection, VK2735, into a late-stage trial sooner than anticipated. This milestone brings the San Diego-based company closer to entering the highly lucrative GLP-1 market, which analysts predict could reach $150 billion by the end of the decade.
Viking Therapeutics is among several biotech firms vying to compete with industry giants Novo Nordisk and Eli Lilly. These companies have seen a dramatic rise in demand for their weight loss and diabetes GLP-1 medications over the past two years. The announcement led to a dip in shares for Eli Lilly, which closed over 4% lower on Thursday, and Novo Nordisk, whose stock closed almost 3% lower.
Originally, Viking had planned to start another mid-stage trial for VK2735 after reporting positive results from a phase two study in February. However, after receiving feedback from the Food and Drug Administration (FDA), the company opted to move directly into a phase three trial. CEO Brian Lian shared this update during an earnings call on Wednesday, noting that the company aims to meet with the FDA in the fourth quarter to finalize the trial’s design and timing, with plans to commence the study soon after. This decision is expected to accelerate the development timeline for VK2735 by approximately a year, according to BTIG analyst Justin Zelin, who also noted that the drug is currently projected to launch in 2029.
Lian further revealed that Viking plans to test VK2735 as a monthly injection in future studies, potentially offering a more convenient alternative to Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy, which require weekly administration.
VK2735 promotes weight loss by targeting both GLP-1 and another hormone called GIP, similar to Eli Lilly’s Zepbound and its diabetes counterpart Mounjaro. In a phase two trial, patients receiving weekly doses of VK2735 lost up to 14.7% of their body weight, or 13.1% compared to a placebo, over a 13-week period.
In addition to the injectable version, Viking Therapeutics is also developing an oral form of VK2735. Early-stage trials of the pill showed a 3.3% weight loss compared to a placebo.
Viking’s advancement to a phase three trial marks a significant step in its development pipeline, positioning it closer to competing in a rapidly growing market and offering new hope for effective weight loss treatments.
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